The National Electric Power Regulatory Authority has approved a 93-paisa per unit reduction in electricity rates under fuel cost adjustments, providing relief to consumers across Pakistan. According to the official notification, the reduction relates to fuel cost adjustments for November and will be reflected in electricity bills issued in January. The cut applies to all consumer categories nationwide, including Karachi, with the exception of lifeline consumers, who will not benefit from the adjustment.
The decision follows a request by the Central Power Purchasing Agency, which had asked Nepra to pass on a refund of Rs0.72 per unit to consumers through January bills. This adjustment is expected to offer cumulative relief of more than Rs5.6 billion. Fuel cost adjustments are reviewed on a monthly basis to account for changes in global fuel prices and power generation costs, with the impact passed on to consumers in subsequent billing cycles.
Alongside the rate reduction, Nepra also announced the average electricity base tariff for the January to December 2026 period, setting it at Rs33.38 per unit. This represents modest relief after several years of rising power tariffs. The government has shifted tariff determination from a fiscal-year basis to a calendar-year framework, making the revised tariff effective from January 1, 2026. Nepra stated that the new base tariff is 62 paisa lower than the rate applicable during July to December 2025, while the average tariff for the 2025–26 fiscal year stood at Rs34 per unit.
At present, the country’s base tariff is Rs31.59 per unit, meaning the newly approved rate is Rs1.79 higher than the existing base tariff. Nepra further noted that the total financial requirement of distribution companies for 2026 is estimated at Rs3,379 billion. This includes Rs2,923 billion allocated for electricity procurement and Rs456 billion for operational expenses and profit margins. Annual electricity sales are projected at 101 billion units, and the revised tariff structure has been designed to ensure full cost recovery while meeting the financial needs of the power sector.
